question archive Uganda Clays Ltd (UCL) is a public limited liability company incorporated under the laws of Uganda and was established on July 10, 1950 and headquartered in Kajjansi, Wakiso District, Uganda UCL employs over 300 staff whose production plants/ factories are located in Kajjansi, Wakiso and Kamonkoli, Budaka District with production capacity of 115,000 tiles per day combined from the two plants UCL has a wide range of product offerings that include: Roofing tiles Mangalore tiles These are made of peculiar Basel Mission pattern with suitable projections so that they interlock with each other when placed in position

Uganda Clays Ltd (UCL) is a public limited liability company incorporated under the laws of Uganda and was established on July 10, 1950 and headquartered in Kajjansi, Wakiso District, Uganda UCL employs over 300 staff whose production plants/ factories are located in Kajjansi, Wakiso and Kamonkoli, Budaka District with production capacity of 115,000 tiles per day combined from the two plants UCL has a wide range of product offerings that include: Roofing tiles Mangalore tiles These are made of peculiar Basel Mission pattern with suitable projections so that they interlock with each other when placed in position

Subject:WritingPrice: Bought3

Uganda Clays Ltd (UCL) is a public limited liability company incorporated under the laws of Uganda and was established on July 10, 1950 and headquartered in Kajjansi, Wakiso District, Uganda

UCL employs over 300 staff whose production plants/ factories are located in Kajjansi, Wakiso and Kamonkoli, Budaka District with production capacity of 115,000 tiles per day combined from the two plants

UCL has a wide range of product offerings that include:

Roofing tiles

Mangalore tiles These are made of peculiar Basel

Mission pattern with suitable

projections so that they interlock with

each other when placed in position.

Portuguese tiles               Greater curvature than other

roofing tiles.

• Bent tile appearance once the roof

is completed.

• Improved tightness and slippage

features. It is also highly resistant

to the cold.

Marseille tiles    These were the first interlocking tile

to be given a ribnin the center of the

tile. The central ribn strengthened tile

installation and made maintenance

easier.

Hard-wearing, and often used in

bathrooms, living areas and/or outdoor

patio areas

Suspended floor Units  

Maxpans

•             Maxipan 4

•             Maxipan 5

•             Maxipan 6

•             Maxipan 7

•             Maxipan 9

•             Maxipan 12         Our maxpans are for strong, but

lighthouses. For stored houses that

go up to 30 stories, our maxpans are

the advisable choice. With retained

strength and lightweight, what more

would anyone need.

Floor tiles           

Quarry tiles

8x8

6x12

8x12

6x6

Bricks & Half Bricks          Hard-wearing, and often used in

bathrooms, living areas and/or outdoor

patio areas.

Facing bricks       These bricks exist in different colors,

sizes and orientations and can be used

in construction to achieve different

beautiful surface designs. UCL Facing

Bricks are used to improve the beauty

of a structure.

Select bricks       These are made of peculiar Basel

Mission pattern with suitable

projections so that they interlock with

each other when placed in position.

Features + benefits

These bricks exist in different colors,

sizes and orientations and can be used

in construction to achieve different

beautiful surface designs. UCL Facing

Bricks are used to improve the beauty

of a structure.

 

This report shall focus on Mangalore tiles (B2B). This was the first introduced tile in Uganda. The original “Tegula”. The Mangalore is UCL’s indomitable, most trusted standard tile that has received no complications and no complaints over the years. It continues to thrive deep with construction companies, builders, and real estate owners, and overall, the brand has maintained exponential growth both in brand love and positive sentiments. SEE APPENDIX I

Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit (Dr. Philip Kotler, 2012)

UCL’s vision is to be the leading brand for building solutions. Its mission is to drive radical improvements in building solutions through unmatched simplicity, convenience, and quality. The two can be achieved through upholding its values of Customer first, Bold, Accountable, Quality, Teamwork and Integrity.

UCL’s strategic business units comprise both Business to Consumer (B2C) and Business to Business (B2B).

The B2C entails of day to day walk in customers. The B2B comprises of over 14 distribution points, 2 factory outlets and 2 production plants. This report shall focus on B2B segment.

The interests of UCL’s stakeholders are integral to the way UCL works and for decision making. Key stakeholders at UCL include:

•             Shareholders - National Social Security Fund) being one of the largest

•             Customers

•             Suppliers (both foreign and local)

•             Regulatory bodies

•             The employees

•             Community

•             NSSF Savers

•             Government of Uganda

•             Media

 

 

                                  UGANDA CLAYS LIMITED’s STAKEHOLDER ANALYSIS

                    INFLUENCE & POWER AUTHORITY        HIGH POWER, LOW INTEREST:

 

(Keep Satisfied) 

 

-Government of Uganda

-Suppliers

                HIGH POWER, HIGH INTEREST:

 

(Keep engaged Closely)

 

-Employees

-Shareholders

-Customer (Retail and whole sale)

 

               

LOW POWER, LOW INTEREST:

 

(Monitor)

 

 

 

               

LOW POWER, HIGH INTEREST:

 

(Keep Informed)

 

-Media

-Community

                                                            STAKEHOLDERS INTERST

 

UCL is Uganda’s leading manufacturer of baked clay products and is faced with a number of competitors that include: Roofing’s Limited, Lweza Clays, Kajjansi Clays, East African Roofing’s and Uganda Baati among others.  UCL’s market share stands at 53% in roofing materials, the other players share the 47.

 

1.2 Marketing fit with corporate and business strategy

UCL is building a culture that is customer centric, people centered, growth and value creation to its stakeholders.

?             Inbound Logistics: Efficient average production capacity of 115,000 clay products per day hence enhancing delivery of the clay products to the consumers with no disruption.

?             Operations-Manufacturing of quality clay construction products that are sold at a premium price

?             Marketing & Sales-Huge marketing budget able to cover brand building through advertising, communications and public relation activities, partnerships, research and development and fully engaging is CSR.

?             After sales service- Follow up visits to some customers (retail and whole sale) to document the experiences from the products sold out and take pictures of finished houses under closed loop feedback.

?             Procurement unit needs to ensure raw materials are purchased at competitive rates following the procurement procedures and evaluations are followed and clearly documented. 

?             Technology- Installing new fast technology that is going to increase capacity by 50% hence reducing on the manual processes and shall promote efficiency.

?             Human Resource-Enhancing an inclusive performance culture and talent development of the recruited staff   and fostering high staff retention. Through its human resources manual under employee reward management; UCL gives its long serving staff of 10 years and above building products worth their year’s salary to ensure that its internal customers (staff) can own a house with company products which they wouldn’t afford like casual workers, and many at officer level.

Through its recruitment process, promotes the Uganda labour Act that supports giving jobs to those physically challenged, who later enjoy the reward policy too.

 UCL has a matrix organisational lay out, where teams report to multiple leaders, and this keeps open communication between teams and gives room for idea generation which helps the company create more innovative products and services.

UCL’s core competency has been to maintain quality products which proven hard for competition to imitate.

UCL’s Corporate mission is to drive radical improvements in building solutions through unmatched simplicity, convenience, and quality. This is in line with corporate objective gradually performs a SWOT analysis to keep abreast of the internal and external factors and forces that directly affect it.

STRENGTHS

 

?             Strong brand and market presence

•             Great experienced and passionate team

•             Two production plants with a capacity of 115,000 products per day

•             High tech at the production plants

•             ISO certified public company listed on the Uganda Securities Exchange

•             Timely delivery of products

•             High market share           WEAKNESSES

 

?             Low capacity to match the demand.

?             Low insight and driven capabilities

OPPORTUNITIES

 

?             Iron sheets market

?             Rwanda border reopened after closure for over a year hence increase on customers

?             Regional markets in Eastern Africa

?             Economy reopened hence increased demand for building clay products

?             Growing population majorly in the urban areas. The June 2022 preliminary GDP estimates by the Uganda Bureau of Statistics (UBOS) indicate that the economy grew by 4.6 percent in Financial Year (FY) 2021/22 from a revised growth rate of 3.5 percent the previous year.     THREATS

 

?             Competition from other industry players.

?             Govt regulations and increased taxation 

?             Increased pressures from regulatory bodies like NEMA for environmental compliance.

?             Economic downturn due to COVID 19 impacts. Inflation and Russian/ Ukraine war effects that trickle down on raw materials.

?             Low customer disposable income as a result of COVID 19 effects.

 

 

 

 

Corporate objective:

To increase customer satisfaction index by 90%, reduce wastage by 5% in December 2022

Marketing objective

To Increase UCL’s market share to 60% and product awareness by December 2022.

With reference to Porters Generic strategies, UCL adopts the differentiation strategy while focusing on its main segment of B2B i.e., through customer satisfaction and offering quality products.

In order to increase in market share, UCL has ventured in applying Ansoff’s Growth Strategy as below:

?             Market development through export of products to Rwanda, Kenya, Tanzania and proposed new markets in South Sudan and Burundi that shall be supported by the two production plants in Kamonkoli and Kajjansi. 

?             Product development through introduction of new products e.g., ceramics (wall and floor), smooth wall brick among others.

?             Market penetration: growing its existing products in the existing markets, brand awareness, encouraging members that save with NSSF one of its shareholders to buy products at a discounted rate of 4% to increase accessibility of its products and technical services.

1.3 Capturing Environmental Insights

Political factors

Uganda has had a stable and peaceful environment lately and this has promoted good business and trade for UCL within and across the borders. However, this has also increased competition from other market players.  At the start of FY 2021, there was sharp contraction in revenue of UCL sighting customers limitations on construction activities due COVID19 Impact.

 

 

 

 

Economic factors

Year on year value added in industry sector grew by 6.8 percent in Q2 of 2021/2022 compared to a decline of 2.1 percent (revised) in Q2 of the previous year. The construction activities registered a growth of 6.2 percent in Q2 2021/2022 compared to a decline of 3.6 percent (revised) in Q2 2020/2021.

Despite the indicated economic growth, COVID 19 paused a danger to UCL’s production volumes and margins. A significant number of people lost their jobs, businesses were partly operational, peoples purchasing power affected the revenue of UCL.

 

Social factors 

Rural urban migration has impacted on UCL’s market growth in the urban centres. The masses have over the years learned the need for better housing and are saving to attain good accommodation both in the urban centres and country homes.

Technological factors

UCL is implementing improved processes to reduce wastage through; re-use and recycled water, damaged products, non-renewable minerals, other inputs. UCL too has identified and adopted new technologies and process improvements to reduce fossil fuel combustion in all their activities, through; sourcing biomass as the kiln fuel and this has increased energy efficiency in our plants at Kajjansi and Kamonkoli. Increased internet usage in the country, has enabled UCL to reach out to its distribution points and to the public hence this being a cheaper channel for marketing.

 

Legal and Environmental factors

Due to increasing clay excavations by UCL, the government of Uganda has put in place strong regulations against environmental degradation i.e., NEMA which evaluates quarry areas of clay excavation and ensures that UCL refills the quarry(s) with soil and plants trees. UNBS assess clay samples and clay finished products on a quarterly basis and Ministry of Water Minerals and Environment too keeps an eye on UCL to avert environment destruction. UCL is bound to adhere to all regulators as per the laws of Uganda and re-think ESG (Environment, Social and Corporate Governance) in their operations.  APPENDIX …

UCL presents a fairly favorable PESTELE environment from the above analysis.

Porters’ Five Forces to analyse the macro environment

According to Michael Porter, five forces represent the key sources of competitive pressure with in an industry.

1. The threat of new entrants

Starting and setting up a clay products factory in the construction industry requires high capital intensiveness, hence the threat of new entrants is low due to limited capital resources. However, there are few barriers to entry and also government encourages investments through offering subsides on construction factory(s)

2. The Threat of substitutes

Building products are easily and highly substitutable though there is an increasing demand for clay building products.

3. Bargaining power of suppliers

The bargaining power for suppliers is low, UCL being a market leader, therefore, having high bargaining power over suppliers. Improvement of the road -infrastructure system, e.g., roads has enabled UCL to access the raw materials this lessening the supplier power.

4. Bargaining power of buyers

Relatively low, UCL is a market leader with a few competitors and considering the growing population with high demand of building products that it greatly channels through agents and outlets at fixed prices.

5. Industry rivalry.

The manufacturing segment is apparently unattractive with other key players like Roofing’s, Uganda Baati, Kajjansi Clays and Lweeza Clays. However, UCL has built a strong brand name over the years that attributes to relatively medium industry rivalry and concentrates on differentiation. UCL’s blue ocean strategy is to align its activities in pursuit of differentiation of its products and low cost.

UCL’s critical success factors for consideration.

?             Strong and growing distribution network with in Uganda and beyond Uganda.

?             Heritage - UCL has been in the business of manufacturing baked clay products for over 70 years and as such enjoys name recognition

?             Quality - Despite the internal challenges that might exist with the manual production processes, UCL’s products are of much higher quality compared to the competitors.

?             Market share of 53% and strong growing network of 14 distributors

1.4 Customer insights and connections.

Gaining marketing insights is one of the leading edge in technological software marketing development. UCL uses customer loop feedback software as a tool for gathering customer insights for value addition. UCL, utilizes insights form the different internet and social media platforms like Facebook, Twitter, Google. This too informs UCL’s new product development and innovation.

Physiologically, UCL customers may be socially motivated by esteem needs i.e., offering a discount of 4% to all persons saving with NSSF on all clay products nurtures an emotional bond with the customers as they attain their esteem according to Abraham Maslow’s hierarchy of needs.

The five-stage model involving: problem recognition, information search, purchase decision, evaluation of alternatives and post purchase behaviour can explain consumer buying decisions. UCL, influences each stage, for example; displaying of its clay baked products on its website and social media platforms simplifies information search and this increases comparison of alternatives. There is also an option for customers to feedback on the same online platforms. Through social media platform, UCL has been able to closely interact with customers hence fostering a brand community. None the less, with increased competition, UCL needs to devise ways of understanding how customers satisfaction can be monitored, improved and add value.

 

1.5 Capturing Marketing insights

For UCL to keep up with consumer and environmental changes, a management information system should be considered as below:

Marketing information system (MIS) for Uganda Clays Limited

Environment/Data type                Organisational   Micro    Macro

Internal                •             Customer satisfaction ratings

•             Historic sales figures

•             Sales outlet records

                •             Customer records

•             Financial Statements

•             Staff engagement surveys           •             Published construction industry data

 

•             Customer data from internet and social media platforms 

External              

 

                •             Data from Uganda National Bureau of standards as a regulator   •             Industry market research reports

 

•             Governmental reports

 

To assess the potential changes in demographics and market size, UCL ought to adopt the above MIS in informing her strategy changes as a way of obtaining new customer trends, needs, wants, and masonry changes in both the construction and manufacturing industries. 

In instances of numerous customers, usually a straightforward index is commonly adopted, UCL could employ the Multiple-Factor Index Method that aids in estimation of market potentials for its current markets in Uganda, Kenya, Southern Sudan and DR Congo. UCL would define a multiple factor index and assign each region-specific weight. Criteria would consider percentage of each country’s population, percentage of country’s internet penetration, the percentage of each country(s) disposable income. Consequently, this would then have an indication on the sales made in a given country. In the manufacturing industry where UCL operates, there might be need to adjust the market potential for additional factors like; other competitors’ presence, promotional costs (local), seasonal factors, and market eccentricities. This can be done through referring to statistics of UBOS data publications aiding UCL in evaluating her sales against the industry data.

Big Data capabilities could be adopted by UCL and would be used to find out on rival’s products or services purchased to identify optimal matches in real time.

Implications of accessible organizations

•             This has made UCL understand the value and investment of sound marketing, that it is critical to her success considering the plans to double its production capacity by 2023. And marketing department of UCL, more than any other business function, is tirelessly putting much effort in customer interactions, mainly; to attract new customers by promising superior value and to keep and grow current customers by delivering value and satisfaction.

 

•             Her marketing team has been pushed to intensively hold the idea that, the company goals and objectives entirely depend on them by identifying trends, needs, and wants of target audience with the view of delivering the desired satisfactions better than competitors. This is done through product research and creativity, using both pull and push methods of aggressive selling, allowing customers to come up with new production innovations, product improvements, and investing in customer experience tools that do provide feedback hence being more customer centric.

 

•             A deduction of 2% of income tax payable is granted to UCL by Uganda Revenue Authority for employing at least 5% of people with disabilities on a full-time basis hence becoming more popular in such circles of influence.

 

Section 2: PLANNING

2.1 Segmentation

UCL’s corporate strategy supports market penetration placing focus on customers in East African region i.e., Uganda, Kenya- Mombasa, South Sudan, Tanzania-Mwanza and neighboring Democratic Republic of Congo. In future UCL plans to penetrate East and Central Africa and the European market in 5 years from now. Segment identification can be done using variables that may include:

Geographic Segmentation:

UCL is organised into two business units based on the factory location and has two reportable operating segments that is Kajjansi (Kampala City) factory and Kamonkoli (Eastern part of Uganda) factory. The Kamonkoli factory supplies baked clay products to nearby Kenya and South Sudan because of the factory location and Eastern and Northern parts of Uganda. The Kajjansi factory supplies products to other parts of Uganda, Tanzania and DR Congo. These segments are monitored based on operating results of its operating units to aid in decision making about resource allocations and performance assessments. Both the city and up-country factory(s) use the agent model as sales distribution points and this gives UCL mileage in product distribution with a sales representative attached to each.

 

Demographic Segmentation:

One reason demographic variable such as age, family size, family life cycle, gender, income, occupation,

education, religion, race, generation, nationality, and social class are so popular with marketers is that they’re often associated with consumer needs and wants.   For UCL, its core market is concentrated on family life cycle and income coupled with occupation. These ae interested in setting up homes for better living.

 

Physiographic Segmentation:

 

Psychographics is the science of using psychology and demographics to better understand consumers. In psychographic segmentation, buyers are divided into groups on the basis of psychological/personality traits, lifestyle, or values.

Due to job opportunities and disposable income in the urban settings, customers have adopted a social affiliation to class and quality building products.

 

Situationally, UCL also focuses large volumes to personal characteristics hence it serves customers with long-standing loyalty to them.

2.2 Targeting

UCL’s sales distribution points and the main dispatching locations are in different geographical regions/ districts and are unified synergistically within the value chain. They are likely to share similar needs and wants (discounts, incentives like commission, facilitation in terms of transport, promoting agents on local media among others) and may likely respond the same way to diverse marketing mix.

Key criteria used in targeting clients that should be considered:

 The segment is measurable:

UCL’s has 14 Agents/ distribution points across the country, 2 factory outlets and their stocks can easily be tracked against the sales and this can be done using the Marketing Information System and the Navision Accounting Package.

In regard to operational efficiency, UCL’s target is to obtain product recovery of 95% and only 5% waste during production. In FY 2021, the recovery rate improved to 68% from 55% from prior period FY2020 (Uganda Clays Limited: Integrated Report 2021).

The segment is accessible:

Sales and Marketing representatives for each outlet and distribution points are well defined and putting into considering the advancement of internet services; social media platforms e.g., use of what’s app groups, UCL website chat box, group emails, and partnering with housing hardware shops/dealers in remote areas, are used to keep the customer and team in the know of pricing fluctuations, promotional drives among many other important information.

 

The segment is potentially substantial through:

 

•             A remodeled agency system, agents/distributors -taking the products closer to the intended customers

•             Strategic partnerships with registered architects (Uganda National Association of Building and Civil Engineering Contractors, The UIPE, Uganda has 300 registered architects and UCL has entered a mutually beneficial arrangement with them to understand the projects on their rotas and what building needs they have or shall have in the future since they too have access to many customers. This puts UCL in the right position to offer them support and for them to support UCL in return. Other strategic partnerships include: Banks like Kenya Commercial Bank, ABSA, Equity Bank, Stanbic, SACCOs among others to expand its presence to the customers.

•             Continuous training programmes for the sales, marketing, and production teams.

 

The segment is differentiable – Grade 1 clay products are usually sought by high income earners who are majorly corporates and Grade 2 (rustic) clay products are usually purchased by relatively low-income earners, staff, and commercial corporations because they present different marketing mix elements and programs.

 

The segment is actionable: this has been done through:

•             Scaling up of hire purchase that is hoped to change the game of UCL’s customers.

•             CSR drives in the communities i.e., donated land to Kajjansi police due to increased population, opened clinics to serve surrounding communities with free COVID19 testing and vaccination, sponsored Kabaka’s marathon run, giving back to the communities, increase awareness and brand association.

•             Free in-house technical support to customers regarding measurements of the building meant to be set up.

•             Factoring or credit support services with Pay Later.

•             4% discount with National Social Security Fund members. 

 

The macro environment analysis using Porter’s Five Forces conducted prior is relatively still favorable and attractive. The threat of new entrants is low. UCL should target agents/ distributors with great consideration of a single-segment strategy that should be trickled down in regions of operation not excluding the markets of Kenya, Tanzania, Democratic republic of Congo, South Sudan.

 

2.3 Branding and positioning

UCL operates a B2B and B2C Module. In order to differentiate from other competitors in the manufacturing industry, it is important to build brand equity. 

The Mangalore being an indomitable, most trusted standard tile, having received no complications and no complaints over the years, has maintained exponential growth both in brand love and positive sentiments and this has given UCL a competitive edge.

The brand resonance model also views brand building as an ascending series of steps, from bottom to top: (1) ensuring customers identify the brand and associate it with a specific product class or need; (2) firmly establishing the brand meaning in customers’ minds by strategically linking a host of tangible and intangible brand associations; (3) eliciting the proper customer responses in terms of brand-related judgment and feelings; and (4) converting customers’ brand responses to intense, active loyalty.

 

UCL needs to consider building blocks in creating significant brand equity:

 

•             Brand salience, UCL is relatively known in the Ugandan market and some of the international markets through the frequent rebuys.

•             Brand performance which is reflected by the UCL’s loyal customers and the built sales distribution network.      

•             Brand imaginary, for UCL ‘’Build to last” a slogan that loyal customers follow that can be assumed to meet all their physiological needs i.e., need for shelter being met. 

•             Brand judgement – since UCL’s long existence to date, customers have been positive about its heritage and quality. However, they present concerns of high fluctuating price changes. 

•             Brand feeling: is mirrored in UCL’s seasonal and event messages to customers e.g., Women’s days, fathers and Mother’s Day sentiments and positive feedback through the customer satisfaction index. 

•             Brand resonance is high for the current customers; however, uncertainty is foreseen where UCL contenders could emerge with defender strategies.

UCL is building brand equity through its marketing elements for example its slogan ‘’Build to Last’’ appealing packaging and signages and the brand name. It’s also performing marketing activities like Uganda Clays training academy, participating in various conferences of building and construction that enhance knowledge of masonry skills.

Corporate social engagements such as supporting the Kajjansi football club, Donated land to the community church, donated land to Kajjansi police station, Opening up UCL clinics, donated food to Karamoja hunger fight. APPENDIX. 3

Implications of accessible organizations

UCL produces quarry tiles/floor tiles that are of quality which have a good surface for

2.4 Selection of strategy

UCL being the leading manufacturer in baked clay products, could deploys a mobile defense strategy as it stretches its domain over new territories through market diversification, predicting customers’ needs, and market enlargement, this could further be achieved through strong sales agents and distributors networks.

UCL’s position defense of occupying the most desirable position in customers’ minds i.e., making her brand almost impenetrable, that presents key functional benefit in a variety of product categories ranging from roofing tiles, floor tiles and facing bricks.

UCL should consider adopting a flank defense, this can be achieved through erecting outposts to support a possible counterattack from her competitors.

Observing the product life cycle, the Mangalore tile, which is UCL’s focus, is viewed to be at the growth stage and considered to be the cash cow due to increased research against algae. UCL is not ready to let this product reach the maturity stage considering the new technology that is being installed, for new innovations.

Implications of accessible organizations

•             UCL products have been brought closer to the customer, and this has turned many into actual sales and meeting the needs of its target consumer.

•             Through its distribution network for clay baked products across the country and region, this has made UCL penetrate and expand its presence and outcompete its rivals.

•             Engagement in CSR with the surrounding communities has led to reduction in social deprivation and more brand resonance.

 

Section 3: IMPLIMENTATION

3.1 Integrated marketing mix

UCL’s marketing mix includes product (tiles, bricks, maxpan, & grilles), promotion (advertising) price (premium & rustic), place (distribution Channels), process (production & chammel management, Physical evidence (agents/factory outlets) and people (UCL staff, customers, sales agents and distributors).

3.2 Product

The core product is Mangalore tile.

The basic product is clay bricks (Face bricks, Smooth bricks, fire bricks and normal plastering bricks)

The Product is expected to last for 70 years with a high resistance to algae.

The augmented product portfolio introduced recently by UCL has been achieved through product differentiation.

Convenient online platforms adopted by UCL for customer payments include mobile money/ agency banking and pay later for quick deliveries.

3.3 Promotion

Apparently UCL, uses the pull strategy to increase its sales through: partnerships with other players, customer demand for red colored products and maintaining her heritage quality.

In future, once UCL achieves the fully automated plant, that can meet production demand, should adopt the push strategy that shall attract customers for her products.

3.4 Price.

UCL’s objective on product pricing, is to see that the products are of good quality and affordable.

UCL should consider adopting perceived-value pricing, i.e., factoring in the buyer’s image of the product

performance, the delivery channels, technical customer support among other variables.

 

3.5 Place

UCL employs physical sales outlets and various digital channels that include: her website – https://ugandaclays.co.ug, WhatsApp number +256772 700255 that ascribes into multichannel marketing in particular omnichannel marketing.

UCL should consider deploying online tele sales and marketing center in future once the new automated technology is fully installed to tap into sales in all corners and improve on timely customer response mechanisms.

 

 

3.6 Extended P’s- people, process and performance)

 

 UCL adopts value creation model that transcribes transformation of her internal and external environments to deliver attractive long-term shareholder returns through the material pillars of people, planet, and performance.

 

The employees at UCL form the core and important internal customer, that comprise of sales and marketing team skilled to delivering marketing success.

Processes at UCL reflect creativity (encourage customer preference on the products they desire and these are manufactured and tailored to the customer needs), discipline (processes are checked for quality assurance at all stages of production) and all these form part marketing management.

 

Performance at UCL is considered in holistic manner that adopts financial and non-financial components of which marketing forms part. UCL has participated in various corporate social responsibility activities already documented above, have engaged in tree planting and also replacing soil with where clay was excavated this feeding into the environment should consider continuous engagements in sustainability.

 

Implications of accessible organizations

UCL produces quarry tiles/floor tiles that are of quality which have a good surface for wheelchairs of physically challenged people this has led to more brand association.

Partnerships with building hardware shops, SACCOs, and other financial institutions has made the product more accessible in areas where they wouldn’t have a strong foot hold, hence making their products available to whoever wishes to use them.

 

Section 4: FEEDBACK AND CONTROL

4.1 Control of strategic marketing activities

UCL ought to set goals, measure performance, monitor and diagnose the output and also ensure corrective action is done where necessary.

Profitability of its two production plants/ factories, geographical distributors should be done by UCL.

A continuous need for independent audit to give an assurance on the holistic organisation processes, of which marketing forms.

The following metrics are vital for performance tracking.

The strategic metric is to track its income growth, volume and profitability in order to grow its market share from current 53% to 60% by 2023.Measure quarterly sales for all its products. Operational metrics: conforms to efficiency and effectiveness of marketing processes that feed into timely deliveries to agent outlets and distribution channels. Activity based metrics is based on measuring the effectiveness of marketing activities such as Celebrate women every month of March while promoting her products, trade shows that happen in the month of October among others. Leading metrics: UCL customers perception of her brand name is with high regard in brand equity growth. This could be maintained through increasing her production capacity to meet the required demand for its products.

The predictive metrics is to govern its future positioning and establish options like setting up the UCL training academy to meet labour demands for masonry skills and also through partnering with (banks for facility arrangement, Plascon- paint company, building contractor, Roofing’s Ltd -for iron bars, Hima cement) hence a customer is given a fully finished house, thus meeting the demand of housing in East African region and also increasing UCL’s sales growth.

To this end, efficient tracking of the above metrics, UCL should:

•             Invest in big data analytics.

•             Develop a periodic risk matrix that is continuously updated of the apparent risks considering the impact and likelihood with planned mitigating measures. This aids in decision making. 

•             Monitor emerging trends in the manufacturing, building and construction industry(s)

•             Re-skill and up skill its staff and adopt a performance culture that creates content experts.

Implications of accessible organizations

•             Through their various multi communication channels like website chat box, Facebook, twitter, WhatsApp, UCL has managed to have over 70% of its website visits from those outside Uganda e.g., United states of America, United Kingdom who wish to build back in their hometowns in Uganda hence increasing its search engine optimization and sales.

•             UCL customers through the different open channels of communication have suggested and designed products like interlocking brick that saves sand, cement, face bricks that make a home not to be plastered and in turn UCL has leveraged on this to increase its revenue and more appealing to the customers.

•             Through closed loop feedback (CLF) from customers and staff, UCL has managed to improve in its customer satisfaction index since it is able to work on customer complaints and anticipate on customer needs and preferences hence making it more proactive in innovation and customer management.

 

 

 

 

Glossary

List of Abbreviations and Acronyms

UCL – Uganda Clays Limited

B2B- Business to Business

B2C-Business to Consumer

UBOS- Uganda Bureau of Standards

UNBS- Uganda National Bureau of standards

NEMA- National Environmental Management Authority

NGO- Non-Government Organisations

NSSF-National Social Security Fund

CSR-Corporate Social Responsibility

UIPE -Uganda Institution of Professional Engineer

SACCO – Savings and Credit Cooperative Organization

ABSA – Amalgamated Banks of South Africa Limited

CLF – Closed loop feedback

 

 

 

 

APPENDICES

Appendix 1 - Mangalore tiles

 

 

Appendix 2

 

          UGANDA CLAYS LIMITED’S BRAND HEALTH SCORES. 

 

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